Nigeria’s short-term benchmark interest rates closed Tuesday’s trading session on a mixed note, as significant liquidity inflows from matured Open Market Operations (OMO) bills strengthened cash levels in the financial system.
Data from AIICO Capital Limited showed that system liquidity opened at about ₦2.2 trillion, despite the Central Bank of Nigeria (CBN)’s recent liquidity mop-up operations, which have drained over ₦5.3 trillion from the market.
The surge in liquidity kept interbank rate movements constrained, with strong activity observed at the CBN’s standing deposit facility window as banks continued to manage excess cash positions.
Following the ₦481.3 billion inflow from OMO maturities, system liquidity settled at ₦2.153 trillion on Tuesday, reflecting a stable money market environment.
Consequently, Nigerian interbank rates remained largely unchanged, with overnight lending rates steady at 24.86%, mirroring last week’s trends. Funding costs saw minor adjustments, as the overnight rate dipped marginally by 3 basis points to 24.87%, while the Open Purchase Rate (OPR) remained fixed at 24.85%.
Market analysts noted that the funding cost is expected to maintain a similar trajectory in the short term, barring any significant liquidity changes or major funding activities.
In the Treasury Bills secondary market, performance was mixed across maturities. Short-term (1-month and 3-month) yields climbed by 11bps and 6bps respectively, while mid- to long-term (6-month and 12-month) rates dropped by 4bps and 7bps.
Despite these divergent movements, the average Nigerian Treasury Bills (NTB) yield inched up slightly by 0.5bps to 17.38%. This reflected sustained bullish sentiment and a resilient appetite for short-term government instruments among institutional investors.
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